The Monte Paschi announced bailout claims that retail investors will be protected from losses imposed by the bailin by compensating them for up to €100k (the financial services compensation scheme limit).
Some of the junior corporate debt is trading at 40 cents to the euro for Monte Paschi, and also below par for other banks. Does it mean that the Italian government guarantees repayment at par for corporate bonds bought by retail investors?
Since institutions will be scrambling to offload their bond portfolios, this seems like a great deal for a retail investor where one can make up to €60k for free. Seems too good to be true.
Can someone clarify some of the details behind the bailout?